Hospitality funding needs met by merchant cash advances
Lender 365 Business Finance has been supporting the funding needs of the country’s hospitality industry, with the demand from restaurants for merchant cash advances up 30% year-on-year. Meanwhile, pubs and bars have shown an even greater need for flexible finance with a reported 37.5% growth in the number of advances taken by these businesses.
SMEs in the UK’s hospitality market are now more frequently turning to merchant cash advances as an alternative to bank loans, mainly because they are quicker to apply for and an increasingly attractive proposition for business owners when it comes to repayment, with no fixed terms or APR.
While some restaurants, pubs and bars are still getting back on their feet following the negative impacts of the Covid-19 pandemic, flexible funding that can take just 24 hours to be approved is proving to be a lifeline for many in this sector.
However, it is not just the hospitality industry that is making the most of merchant cash advances, as 365 Business Finance has had a staggering 109% increase in funded deals over the summer, in comparison to the spring.
Managing director at 365 Business Finance, Andrew Raphaely, said, “Despite our main customers being food retail outlets during the lockdowns, caused by the pandemic, since the spring there has been a noticeable increase in restaurants, pubs and bars taking out merchant cash advances – as they aim to refurbish and expand now that the restrictions relating to social distancing have been relaxed.
“Over the last three to four months we have definitely seen a rise across the majority of business sectors, in terms of applications for funding from us. We put this down to SMEs in the UK now fully realising and exploring the benefits of merchant cash advances over traditional bank loans.”